Costco Wholesale is set to significantly expand its retail footprint, announcing plans to open 35 new warehouse stores by August 2026. This ambitious growth strategy is fueled by a robust 8% increase in annual sales, demonstrating the company's continued success and member loyalty.
The expansion includes both new locations and strategic relocations, aiming to enhance accessibility for its growing customer base.
Ambitious Store Expansion
Following a fiscal year where 24 new warehouses were established, Costco is projecting an even more aggressive expansion in Fiscal Year 2026, which concludes in August 2026. The plan encompasses 35 new store openings, with five of these designated as relocations.
This strategic move will lead to a net addition of 30 stores to its existing network. Currently, Costco operates 914 warehouse stores globally, with a substantial majority of 629 located in the U.S. and an additional 110 in Canada.
Strong Financial Performance
The expansion plans are underpinned by impressive financial results. Costco experienced a notable boost in sales for both the fourth quarter and the entire fiscal year ending Aug. 31, 2025.
Net sales for the quarter rose by 8% year-over-year, reaching $84.4 billion, up from $78.2 billion in Q4 2024. The full fiscal year saw an even more significant increase of 8.1%, with sales climbing from $249.6 billion to $269.9 billion.
Enhancing Customer Experience
Beyond physical expansion, Costco is also focusing on enhancing its operational efficiency and customer experience through technological advancements. Vachris highlighted improvements in checkout technology implemented during Q4.
These innovations allow employees to scan smaller transactions while customers remain in line, enabling payment without requiring shoppers to unload their carts. This streamlines the checkout process, reducing wait times and improving overall satisfaction.
Furthermore, Costco is making strides in its digital and e-commerce capabilities. Recent enhancements include the use of data augmentation to improve search functionality, the introduction of passwordless sign-in for its mobile app and the creation of virtual waiting rooms for high-demand items like Pokémon cards.
These measures are designed to mitigate bot traffic, ensure fairer access for members to popular products and boost site performance during peak periods.
